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The question of why we need to study

information systems and information technology
?
Information systems have become as integrated into our daily business
activities as accounting, finance, operations management, marketing,
human resource management, or any other major business function.
Information systems and technologies are vital components of successful
businesses and organizations some would say they are business
essentials.
Information technology can help all kinds of businesses to improve the
efficiency and effectiveness of their business processes, managerial
decision making, and workgroup collaboration, which strengthens their
competitive positions in rapidly changing marketplaces.

IT Vs IS

Payroll
System

INFORMATION
TECHNOLOGY

Inventory
System

Hardware
Software
Databases
Networks
Other related
components

are used to build
INFORMATION
SYSTEMS
Marketing
System

Customer
Service
System

What Do MIS Professionals Do in an Organization?

Analyze, design, implement and administer Information Technology
(IT)

Deliver IT to businesses

Apply IT to business goals

Understand IT capabilities to provide value-added business solutions

Communicate with customers and managers to understand their IT
needs

Over 90% of MIS professionals work outside of IT Industries
(Information Technology Association of America study)

MIS Professionals

Are business oriented, problem-solvers, analyzers, innovators, and
communicators.

Work across silos and have a wholesome, horizontal understanding of the
organization.

Are technically competent

Are excellent Communicators

Work in many industries: Health-care, banking, broadcasting, education, high
tech, music, media, gaming, government, retail, surveillance - just about
every industry today depends on MIS

Bridge the IT staff and business clients, relying on strong communication,
business understanding, and technical skills

Sometimes perform technical functions like networking, security, or
development

Sometimes deal with less technical functions such as IT audit, business
analysis, or consulting

Top 10 Reasons to Major in MIS

Plentiful and well-paid jobs - High demand for IT workers and High Salaries

Rewarding – find solutions, help people and businesses with their IT needs

Versatile and Mobile – work anywhere, in any industry

Creative and innovative – DO THINGS! CREATE STUFF!

Solve real problems in business—build bridges between technology,
businesses, and people

Growth and leadership – move quickly up the ladder to leadership positions

Fun – dynamic, fast, never boring

Communicate with many people, work in team, build connections

Broaden perspective – MIS professionals are uniquely capable to think
sideways, horizontally, across business functions and silos.

Enjoy working with greatest and latest technologies

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while Chapter 14 covers some of the key methods business managers can use to manage the information systems function in a company with global business operations. . and global levels of a business. Chapter 13 focuses on security challenges and security management issues in the use of information technology. The challenges of effectively and ethically managing information technology at the enduser. enterprise.MIS 10 Edition James O’Brien Management Challenges. Thus.

MIS 10 Edition James O’Brien .

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Three Fundamentals by O’Brien .

most retail stores now use computer-based information systems to help their employees record customer purchases. you regularly encounter information systems that support the business processes and operations at the many retail stores where you shop. buy new merchandise. keep track of inventory. For example. . and evaluate sales trends. pay employees. Store operations would grind to a halt without the support of such information systems.3rd Support of Business Processes and Operations.  As a consumer.

This function not only supports the decision making of store managers.  Information systems also help store managers and other business professionals make better decisions. but also helps them look for ways to gain an advantage over other retailers in the competition for customers. and others. decisions about what lines of merchandise need to be added or discontinued and what kind of investments they require are typically made after an analysis provided by computer-based information systems. buyers. For example.2nd Support of Business Decision Making.  Ramzan->  Bakra Eid-> .

For example. Thus.1st Support of Strategies for Competitive Advantage.  Gaining a strategic advantage over competitors requires the innovative application of information technologies. with links to the e-commerce Web site for online shopping. strategic information systems can help provide products and services that give a business a comparative advantage over its competitors  Home delivery free . store management might make a decision to install touch-screen kiosks in all stores. This offering might attract new customers and build customer loyalty because of the ease of shopping and buying merchandise provided by such information systems.

MOT .

Classification of IS .

Examples: sales and inventory processing and accounting systems.Transaction processing systems. Support team. update operational databases. and enterprise communications and collaborations. Process data resulting from business transactions. . Examples: e-mail. and steel production systems. and produce business documents. power generation. Enterprise collaboration systems. and videoconferencing groupware systems. workgroup. Monitor and control industrial processes. Examples: petroleum refining. chat. Process control systems.

production performance. s of managers and other business professionals.Management information systems. Provide interactive ad hoc support for the decisionmaking processe Examples: product pricing. actions of competitors. and risk analysis systems. DSS. and other sources tailored to the information needs of executives. Examples: systems for easy access to analyses of business performance. . Decision support systems. and economic developments to support strategic planning. Provide information in the form of prespecified reports and displays to support business decision making. Examples: sales analysis. profitability forecasting. and cost trend reporting systems. Provide critical information from MIS. Executive information systems.

Expert systems. sales proposal strategies. and e-commerce Web systems. marketing. Strategic information systems. shipment tracking. process monitor. finance. Knowledge management systems. Support operations or management processes that provide a firm with strategic products. Examples: information systems that support applications in accounting. and capabilities for competitive advantage. and human resource management. Support a variety of operational and managerial applications of the basic business functions of a company. Knowledge-based systems that support the creation. operations management. Examples: credit application advisor. Examples: intranet access to best business practices. services. and customer problem resolution systems. . organization. Functional business systems. and dissemination of business knowledge within the enterprise. Knowledge-based systems that provide expert advice and act as expert consultants to users. and diagnostic maintenance systems. Examples: online stock trading.

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 By applying information and communications technologies and systems. MIS is also term to refer to class of systems used to support operational and tactical decision making  (MIS)?  MIS is a discipline and a profession that brings information and communication technologies to businesses and society. . planning. designing. MIS solves real business problems and gives competitive advantage to firms. Management Information Systems Terminology Confusion ◦ MIS = the study of information technology in business settings/ Alignment in order to gain competitive and strategic advantage ◦ But. developing.  MIS focuses on the concepts and tools necessary for analyzing. and managing organizational information resources.

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Major challenges and opportunities that business managers face in managing information systems and technologies to meet business goals. Fig 1.12 Obrien .

enhancing its organizational structures and culture. time. as well as what can be done to avoid them. enabling its business processes.By now you should be able to see that the success of an information system should not be measured only by its efficiency in terms of minimizing costs. It is important to realize. and increasing the customer and business value of the enterprise. that information technology and information systems can be mismanaged and misapplied in such a way that IS performance problems create both technological and business failures. Success should also be measured by the effectiveness of the information technology in supporting an organization’s business strategies. and the use of information resources. Let’s look at an example of what happens after these failures occur. however. .

are usually generated through accumulation of transaction processing data  Each MIS is an integrated collection of subsystems. or reports.Management Information Systems (MIS)  Management information system (MIS)  An MIS provides managers with information and support for effective decision making. and provides feedback on daily operations  Output. which are typically organized along functional lines within an organization .

Employees Corporate databases of internal data Business transactions Transaction processing systems Operational databases Databases of valid transactions Databases of external data Management information systems Corporate intranet Application databases Drill-down reports Exception reports Demand reports Key-indicator reports Input and error list Scheduled reports Decision support systems Executive support systems Expert systems .

Outputs of a Management Information System Scheduled reports  Produced periodically. monthly)  Key-indicator report  Summarizes the previous day’s critical activities  Typically available at the beginning of each day  Demand report  Gives certain information at a manager’s request  Exception report  Automatically produced when a situation is unusual or requires management action  . weekly. or on a schedule (daily.

Management Information Systems for Competitive Advantage  Provides support to managers as they work to achieve corporate goals  Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement .

.Financial MIS/ in terms off multinationals Provides financial information to all financial managers within an organization.

Databases of internal data Databases of external data Financial DSS Business transactions Transaction processing systems Databases of valid transactions for each TPS Business transactions Internet Internetoror Extranet Extranet Business transactions Financial MIS Financial statements Operational databases Uses and management of funds Financial statistics for control Customers. Suppliers Financial applications databases Financial ES .

Suppliers Manufacturing Design and Engineering Master Production Scheduling Inventory Control Materials Planning Manufacturing and Process Control Quality Control .Databases of internal data Databases of external data Manufacturing DSS Business transactions Transaction processing systems Databases of valid transactions for each TPS Business transactions Manufacturing MIS Quality control reports Process control reports Internet Internetoror Extranet Extranet Operational databases JIT reports Manufacturing ES MRP reports Production schedule CAD output Business transactions Manufacturing applications databases Customers.

pricing decisions. and promotional effectiveness . distribution.Databases of internal data Business transactions Transaction processing systems Databases of external data Databases of valid transactions for each TPS Marketing MIS Manufacturing DSS Marketing applications databases Sales by customer Sales by salesperson Operational databases Sales by product Manufacturing ES Pricing report Total service calls Customer satisfaction Marketing MIS -> Supports managerial activities in product development.

Databases of internal data Business transactions Transaction processing systems Databases of external data Databases of valid transactions for each TPS Human Resource MIS Manufacturing DSS Human resource applications databases Benefit reports Salary surveys Operational databases Scheduling reports Manufacturing ES Training test scores Job applicant profiles Needs and planning reports HR-> MIS : Concerned with all of the activities related to employees and potential employees of the organization .

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• Development. Computer networks are systems of information processing components that use a variety of hardware. and management of information systems that we cover in this text. Understanding system concepts will help you understand many other concepts in the technology. That’s why we need to discuss how generic system concepts apply to business firms and the components and activities of information systems. and telecommunications network technologies. software. strategic business value. • Management. Developing ways to use information technology in business includes designing the basic components of information systems. . • Applications. applications. E-business and e-commerce applications involve interconnected business information systems. Managing information technology emphasizes the quality.Foundation Concepts: The Components of Information Systems (O’brien) System concepts underlie all business processes. system concepts help us understand: • Technology. For example. development. as well as our understanding of information systems and technologies. and security of an organization’s information systems. data management.

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. Input involves capturing and assembling elements that enter the system to be processed. raw materials. energy. or mathematical calculations. finished products. data. Processing involves transformation processes that convert input into output. For example. with a clearly defined boundary. the human breathing process. Examples are manufacturing processes. and human effort must be secured and organized for processing. For example. Output involves transferring elements that have been produced by a transformation process to their ultimate destination. human services.What is System ? A system is defined as a set of interrelated components. working together to achieve a common set of objectives by accepting inputs and producing outputs in an organized transformation process. and management information must be transmitted to their human users.

a number. or a picture  Represents something in the real world  The raw materials in the production of information ◦ Information  Data that have meaning within a context  Data in relationships  Data after manipulation MIS 715 Eaton Fall 2001 38 . Information ◦ Data  A “given.” or fact.Data. a statement. and Systems Data vs. Information.

MIS 715 Eaton Fall 2001 39 . the surveys may provide useful information.Data. Information.  When manipulated.and Systems Data Manipulation ◦ Example: customer survey  Reading through data collected from a customer survey with questions in various categories would be time-consuming and not very helpful.

and Systems Information in Context Figure 1.Data. Information.2 Characteristics of useful informationMIS 715 Eaton Fall 2001 40 .

Information.Data. and produce information as output. MIS 715 Eaton Fall 2001 41 .and Systems Generating Information ◦ Computer-based ISs take data as raw material. process it.

Information. and Systems  What Is a System? ◦ System: A set of components that work together to achieve a common goal ◦ Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal ◦ Closed system: Stand-alone system that has no contact with other systems ◦ Open system: System that interfaces with other systems MIS 715 Eaton Fall 2001 42 .Data.

3 Several subsystems make up this corporate accounting system. and Systems Figure 1. Information. MIS 715 Eaton Fall 2001 43 .Data.

 Keeps managers focused on overall goals and operations of business. MIS 715 Eaton Fall 2001 44 .and Systems Information and Managers ◦ Systems thinking  Creates a framework for problem solving and decision making.Data. Information.

Information. and Systems Figure 1.5 Qualities of humans and computers that contribute to synergy MIS 715 Eaton Fall 2001 45 .Data.

Information. and Systems The Benefits of Human-Computer Synergy ◦ Synergy  When combined resources produce output that exceeds the sum of the outputs of the same resources employed separately ◦ Allows human thought to be translated into efficient processing of large amounts of data MIS 715 Eaton Fall 2001 46 .Data.

Information. and Systems Figure 1.Data.6 Components of an information system MIS 715 Eaton Fall 2001 47 .

◦ Output: Information is displayed or presented. statistical.Data. and other tools. MIS 715 Eaton Fall 2001 48 . Information. and Systems The Four Stages of Data Processing ◦ Input: Data is collected and entered into computer. ◦ Data processing: Data is manipulated into information using mathematical. ◦ Storage: Data and information are maintained for later use.

. • A strategic resource. • A vital part in developing competitive products and services that give an organization a strategic advantage in the global marketplace. Thus.IS Functions The successful management of information systems and technologies presents major challenges to business managers and professionals. • A major source of information and support needed to promote effective decision making by managers and business professionals. • A key component of the resources. employee productivity and morale. the information systems function represents: • A major functional area of business equally as important to business success as the functions of accounting. and capabilities of today’s networked business enterprises. and customer service and satisfaction. marketing. operations management. infrastructure. finance. The IS Function • A recognized source of value to the firm. • A n important contributor to operational efficiency. and human resource management.

and manager of information systems. developer. processing. • The way they perform input. this is important to your future success as a manager. software. you should be able to recognize the fundamental components of information systems you encounter in the real world. • The types of information products they produce. and control activities. data. As we have pointed out in this chapter. This demand means that you should be able to identify: • The people. or modern business technologist. output. and network resources they use. This kind of understanding will help you be a better user. hardware. . business professional.As a business professional. entrepreneur. storage.

poters .